Question

LATOR FULL SCREEN PRINTER VERSION4 BACK NEXT Exercise 14-10 On January 1, 2017, Carla Company sold December 31 of each year. Carla Company allocates interest 12% bonds having a maturity value of $580,000 for $623,973, which provides the basis. and unamortized discount or premium on the effective-interest Prepare the journal entry at the date of the bond issuance. (Round answer to o decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit January 1, 2017 SHOW LIST OF ACCOUNTS

Answer 1

Date	Account titles & Explanations				Debit	Credit
1/1/2017	Cash				623,973
	premium on bonds payable					43,973
	bonds payable					580,000
	Schedule of Interest Expense and Bond Premium Amortization
	Effective Interest Method
Date	Cash	Interest	Premium	Carrying
	paid	Expense	Amortized	amount of bonds
1/1/2017				623,973
12/31/2017	69600	62397	7203	616770
12/31/2018	69600	61677	7923	608847
12/31/2019	69600	60885	8715	600132
Date	Account titles & Explanations				Debit	Credit
12/31/2017	interest expense				62,397
	premium on bonds payable				7203
	Cash					69,600
Date	Account titles & Explanations				Debit	Credit
12/31/2019	interest expense				60,885
	premium on bonds payable				8715
	Cash					69,600